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DEPARTMENT OF REVENUE

DIVISION 465

HAZARDOUS WASTE AND HAZARDOUS MATERIALS

150-465.101

Bulk Facility Defined; Cargo Tank Defined; Load Fee

As used in OAR 150-465.101 through 465.131, and OAR 150-324.340(Note):

(1) A bulk facility is a terminal facility to which a refined petroleum product is delivered primarily by pipeline, barge or rail and from which refined petroleum product is withdrawn and delivered into a cargo tank or barge. A bulk facility must receive some petroleum from pipeline, barge or rail. Bulk facility does not mean an intermediate storage facility. An intermediate storage facility is a facility to which petroleum product is delivered primarily by means other than pipeline, barge or rail.

(2) A single cargo tank may have one or more holding compartments and those compartments may comprise one or more separate tanks and are attached to the same motor. A single cargo tank may not be more than one rail car.

Petroleum products sold to vessels engaged in interstate or foreign commerce are not subject to the fee. The seller of a petroleum product shall not charge the fee if the person ordering the withdrawal from bulk verifies that the product will be used in a vessel engaged in interstate or foreign commerce. Verification can be a copy of a federal permit, license or registration. Vessels engaged in interstate commerce include barges and tugboats licensed as carriers by the Interstate Commerce Commission.

As used in ORS 465.101 through 465.131, “petroleum product” includes blends of petroleum products mandated by ORS 646.905 through 646.963, such as diesel that contains a percentage of biodiesel, or gasoline that contains a percentage of ethanol.

The owner of the petroleum product is considered to be the seller. The seller must pay the fee when the product is withdrawn from the seller's bulk facility for sale or use in the seller's own distribution chain.

For example, Company A owns a bulk facility in Portland and a chain of service stations throughout the state. Company A also owns its own truck-trailers. Company A must pay the fee at the time it withdraws product from its bulk facility into its truck-trailers for distribution to its service stations.

When a product exchange occurs, the seller of the petroleum product that was exchanged must charge the fee.

For example, Company A owns product in a terminal facility. Company A enters into an exchange agreement with Company B whereby Company A will provide Company A's product to Company B's customers. Company B must charge the fee on the withdrawal of product from Company A's bulk facility by Company B's customer.

The fee is to be paid for each load of petroleum products withdrawn from a terminal. A "load" is the total amount of petroleum products withdrawn prior to delivery into a storage tank not connected to another bulk facility, regardless of how many different petroleum products make up the load.

For example, if a cargo tank makes a withdrawal from a bulk facility of gasoline into one tank and diesel into another tank without making any deliveries between the withdrawals, only one load fee is to be charged.

If one load of petroleum products came from different sellers at different bulk facilities or from different sellers at the same facility, the load is a "split load" and only one fee is due for the split load. If each seller collects a fee, the person ordering the withdrawal can receive a credit or refund from the seller by verifying that the withdrawals were a split load. The verification must be submitted to one of the sellers on forms approved by the Department of Revenue.

The person ordering the withdrawal is responsible for paying the fee to the Department of Revenue in the event of fraudulent or improper verification to a seller.

An importer is one who causes petroleum products to be brought into the state from outside Oregon for delivery into one or more storage tanks not connected to a bulk facility. A common carrier that provides transportation service for shippers of petroleum products and that does not own the product is not an importer. Delivery means the offloading into one or more storage tanks not connected to a bulk facility, of one or more petroleum products from a cargo tank or barge. Only one import fee is due for each cargo tank load or barge load of petroleum products delivered in Oregon.

For example, if an importer brings petroleum products into Oregon in a cargo tank and delivers the products to three customers, the importer shall pay one import fee for the load, regardless of the number of customers receiving product.

Where the ultimate destination for a petroleum load being shipped by cargo tank or barge is outside of Oregon, the load is exempt from the load fee.

To avoid being charged the fee, the person making the withdrawal for delivery out of Oregon must verify the exemption to the seller. The verification may be in the form of a separate account with the seller for which the person making the withdrawal certifies that all withdrawals charged on this account will be delivered out of state. The person making the withdrawal is responsible for paying the fee to the Department of Revenue for any load or partial load delivered in Oregon for which the person previously received an export exemption.

If the person making the withdrawal does not first verify to the seller that the load being withdrawn will be delivered out of state, the fee shall be charged. The person may then request a credit or refund from the seller by verifying the exemption to the seller on a form approved by the Department of Revenue.

If any portion of a cargo tank load or barge load of petroleum products is to be delivered in Oregon, there is no export exemption and the load fee shall be charged.

After January 1, 1990, all fees collected during a calendar quarter are due on the last day of the month following the end of the calendar quarter. The due dates will be January 31, April 30, July 31, and October 31.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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